Chesapeake Gets OK For $3.4M Gas Royalty Settlement

Law360, Chicago (October 5, 2011, 4:17 PM EDT) -- Chesapeake Energy Corp. unit Chesapeake Appalachia LLC and two of its predecessors won final approval Tuesday for their $3.4 million deal to resolve a class action in Virginia alleging they underpaid natural gas royalties.

U.S. District Judge James P. Jones signed his final judgment pursuant to the deal reached by Chesapeake and previous lease holders NiSource Inc. and Columbia Energy Group to settle claims they entered into shoddy forward sales contracts and third-party deals that devalued the natural gas produced under leases in which the class...